Tesla Shareholders Approve Musk's Record $1 Trillion AI-Driven Pay Package

Elon Musk's $1tn pay deal approved by Tesla shareholders

He would also need to get a million self-driving "Robotaxi" vehicles into commercial operation. But his early remarks on Thursday placed the spotlight on the Optimus robot, dashing the hopes of some long-time analysts and Tesla watchers who want Musk to focus on reviving the company's electric vehicle business. "Let it sink in where Musk's head is at," wrote analyst Gene Munster, the managing partner at Deepwater Asset Management, on X. "His vision of the 'new book' starts with Optimus. No mention of cars, FDS and robotaxi yet." Later in his remarks, Musk did refer to FSD, shorthand for full-self driving, saying the company was "almost comfortable" allowing drivers to "text and drive essentially." He also likened dealing with regulators to being in a Franz Kafka novel. US regulators are investigating Tesla's self-driving feature after multiple incidents in which the cars drove through red lights or on the wrong side of the road. Some of these incidents have resulted in crashes that have caused injuries. Tesla shares were slightly higher in after hours trading but have risen more than 62% over the last six months. Analyst Dan Ives, known as a long-time fan of the company, called Musk "Tesla's biggest asset" in a note published after the vote. "We continue to believe that the AI valuation is getting unlocked, and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun," Mr Ives added.

Elon Musk wins approval for record $1 trillion Tesla pay package

Tesla shareholders voted on Thursday to approve CEO Elon Musk's record-breaking pay deal -- the largest in corporate history -- endorsing his ambitious plan to transform the electric carmaker into a powerhouse of artificial intelligence and robotics. The package could grant Musk stock worth up to $1 trillion over the next decade. Tesla CEO Elon Musk won shareholder approval on Thursday for the largest corporate pay package in history, as investors endorsed his vision of turning the electric vehicle maker into an artificial intelligence and robotics juggernaut. The proposal was approved with over 75% support, and Musk bounded onto the stage of the company's annual meeting at its factory in Austin, Texas, accompanied by dancing robots. Musk, already the world's richest person, could receive as much as $1 trillion in stock over the next decade, although required deductions would take the value down to about $878 billion. The vote is crucial for Tesla's future and valuation, which hinge on Musk's vision of self-driving vehicles, a U.S.-wide robotaxi network, and mass-market humanoid robots -- even as his far-right political rhetoric has damaged the Tesla brand this year. "What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book," Musk told cheering shareholders. Shareholders also re-elected three directors to Tesla's board and voted in favour of holding annual elections for all board members, as well as approving a replacement pay plan for Musk, since a legal challenge has delayed a previous version. Read moreGrokipedia, Elon Musk's challenge to Wikipedia, offers his own version of the truth "Other shareholder meetings are like snoozefests, but ours are bangers," Musk said. "I mean, look at this. This is sick." Shareholders additionally voted to allow Tesla to invest in Musk's artificial intelligence startup, xAI, though many abstained. Although some raised conflict-of-interest concerns over Tesla's potential investment in xAI, the move is widely seen as mutually beneficial, as Tesla's self-driving ambitions depend on AI expertise and xAI would gain a major customer in Tesla. A win for Musk was widely expected, as the billionaire retained the full voting rights of his roughly 15% stake after Tesla moved its incorporation from Delaware to Texas. Some major investors opposed the plan, including Norway's sovereign wealth fund and proxy advisory firms Glass Lewis and Institutional Shareholder Services, warning that the package could dilute shareholder value. Tesla's board argued, however, that Musk might have quit if the package was not approved. The vote eases investor concerns that Musk's focus has been diluted by his political involvement and other ventures, including SpaceX and xAI. The board and many investors who supported the plan say the record-setting pay package aligns Musk's incentives with long-term shareholder value, as he must achieve a series of performance milestones to receive payment. "Will the growth offset these concerns of dilution - or is this just giving Elon his wish of enough influence to shape the future of AI? That remains to be seen," said Brian Mulberry, a senior client portfolio manager at Zacks Investment Management. Read moreTrump renominates Musk ally and billionaire Jared Isaacman as NASA chief Under the plan, Musk's decade-long goals include delivering 20 million vehicles, putting 1 million robotaxis in operation, selling 1 million robots, and generating up to $400 billion in core profit. But for him to collect, Tesla's market value must climb first to $2 trillion -- from its current $1.5 trillion -- and eventually to $8.5 trillion. Each milestone achieved, both operational and valuation-based, would grant Musk 1% of stock. The plan could still reward him with tens of billions of dollars even if he falls short of some targets. If all targets are met, Musk would be eligible for a 12% stake in stock -- worth about $1 trillion. The true value of those shares would be around $878 billion, as the package only compensates Musk for increases in the company's value. The structure grants him up to $1 trillion in shares, minus the stock's value when the board approved the plan in early September. Musk could pay that amount in cash or accept fewer shares to offset the original value. The ultimate value of the package will fluctuate with Tesla's stock price. Musk has said he is more interested in the additional voting power the deal gives him than the money itself, as he prepares to launch what he called a "robot army."

Elon Musk's $1 trillion pay package approved by Tesla

Elon Musk could be on track for a $1trn (£761bn) pay package - if Tesla meets a series of extremely ambitious targets over the next 10 years. The world's richest man has the potential to become a trillionaire after the controversial plans were approved by shareholders. However, it won't be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade - more than double the number churned out over the past 12 years. He will be tasked with dramatically increasing the company's valuation and operating profits. Another requirement is for Tesla to roll out one million AI-powered robots - despite the fact it hasn't released a single one so far. Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla. As each step is successfully completed, he will receive more company shares and his ownership stake will rise - potentially from 13% now to almost 29%. And even if Musk falls short of some of these targets, he could end up earning a lot of money. Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) - and while that means he has more money than anyone else on the planet, he isn't the richest person in history... yet. That title belongs to John D. Rockefeller, the railroad titan who had wealth of $630bn (£480bn) back in 1913 - when adjusted for inflation. Why? Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI). It's seeking a visionary leader to spearhead this move. And a lot of Tesla's market value is tied up in this ambition. Tesla's board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality. Some believe there's no one else like Musk. More shares in the company are "critical to keep Musk at the helm to lead Tesla through the most critical time in the company's history", said financial services firm Wedbush. "We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk ... and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre." "Getting Musk's pay package approved will be a big step towards advancing Tesla's future goals," Wedbush analysts wrote. Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board's ability "to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade". In a note, ISS said: "The high value of each tranche could also potentially undermine Musk's desire to achieve all goals and create significant value for shareholders", and that the goals "lack precision". Mr Musk has described ISS and another major adviser, Glass Lewis, as "corporate terrorists". There was speculation he would walk away from the business if the package was not agreed on.

What's in Elon Musk's $1 Trillion Tesla Pay Package?

To earn the full award, Musk must turn Tesla into a multi-trillion-dollar A.I. powerhouse while delivering millions of vehicles, bots and robotaxis. During Tesla's annual shareholders meeting in Austin, Texas yesterday (Nov. 6), investors approved a record-setting compensation plan that could award CEO Elon Musk up to $1 trillion in Tesla stock over the next decade. The package, which is tied to an unusually high set of performance milestones, is the third long-term award Tesla has designed to motivate Musk to grow Tesla's business exponentially. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters Tesla, which currently has a market cap of about $1.35 trillion, has seen EV sales slow in recent periods. Its high stock price is instead riding on expectations that the company will deliver its next wave of A.I.-driven products, including robots and self-driving software. "What we're about to embark upon is not merely a new chapter of the future of Tesla but a whole new book," Musk told shareholders yesterday. He also urged investors to "hang onto your Tesla stock," signaling his confidence that he can drive the company's market value even higher. The pay plan, first proposed by Tesla's board in September, drew opposition from major proxy advisors including Glass Lewis and Institutional Shareholder Services (ISS). Even so, more than 75 percent of shareholders ultimately voted for it. The award is structured as 12 tranches totaling 425 million shares, each tied to a mix of market value and operational targets. If Musk achieves all of them, the shares would be worth about $1 trillion. Here are the conditions Musk must meet: Bring Tesla's market value to $2 trillion to unlock the first tranche. The next nine tranches require $500 billion increases in market value, up to $6.5 trillion. The final two tranches require $1 trillion increases, meaning Tesla would have to reach $8.5 trillion by 2035. Each target must be sustained on both a six-month and 30-day average basis. In addition to those valuation goals, Musk must hit a series of operational milestones: Deliver 20 million Tesla vehicles cumulatively. Reach 10 million active Full Self-Driving (FSD) subscriptions over a consecutive three-month period. Deliver 1 million bots, including Optimus or its successors. Deploy 1 million Robotaxis in commercial operation. Meet annual adjusted EBITDA milestones starting at $50 billion and eventually reaching $400 billion. (Tesla's 2024 EBITDA was $12.44 billion.) The last two tranches are also conditioned on Musk putting in place a board-approved CEO succession plan. He will be 64 in 2035. If Musk earns the full award, his stake in Tesla would rise to 25 percent from about 13 percent, matching a demand he has made publicly since early 2024. He has argued that a larger ownership position is necessary not to enrich himself but to preserve his ability to steer Tesla toward "an artificial intelligence and robotics juggernaut of truly immense capability and power," as he said on an earnings call in early 2024. That vision is expected to include his A.I. startup xAI, now valued at about $200 billion. At yesterday's meeting, Tesla shareholders also voted on a separate proposal to allow Tesla to invest in xAI. Tesla general counsel Brandon Ehrhart said more shares were cast for the proposal than against it, though there were many abstentions, and the board would review next steps. Musk has received two similarly structured awards before, in 2012 and 2018, but the new package is dramatically more ambitious. The 2012 plan required him to raise Tesla's market cap in $4 billion increments; the 2018 plan raised that bar to $50 billion increments. This time, most of the plan is built around $500 billion jumps. "In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions -- to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award," Tesla said in an SEC filing yesterday.

Elon Musk's $1 trillion Tesla pay plan wins shareholder approval

Tesla shareholders overwhelmingly approved Elon Musk's record-breaking $878 billion pay package, endorsing his ambitious AI and robotics vision. The vote allows Musk to pursue self-driving cars, a robotaxi network, and humanoid robots, despite concerns over his political rhetoric and potential conflicts with his xAI startup. This approval is seen as crucial for Tesla's future valuation and Musk's continued leadership. Tesla CEO Elon Musk won shareholder approval on Thursday for the largest corporate pay package in history as investors endorsed his vision of morphing the EV maker into an AI and robotics juggernaut. The proposal was approved with over 75% support, and Musk bounded to the stage of the company's annual meeting at its factory in Austin, Texas, accompanied by dancing robots. Musk, already the world's richest person, could get as much as $1 trillion in stock over the next decade, although required payments would take the value down to $878 billion. The vote is crucial for Tesla's future and its valuation, which hangs on Musk's vision of making vehicles that drive themselves, creating a robotaxi network across the U.S. and selling humanoid robots, even though his far-right political rhetoric has hurt the Tesla brand this year. "What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book," Musk told a cheering group of shareholders. Shareholders also reelected three directors on Tesla's board and voted in favor of holding annual elections for all board members and a replacement pay plan for Musk's services because a legal challenge has held up a previous package. "Other shareholder meetings are like snoozefests, but ours are bangers," Musk said. "I mean, look at this. This is sick." Shareholders voted in favor of Tesla investing in Musk's artificial intelligence startup, xAI, though there were many abstentions. Although conflict-of-interest concerns have arisen over Tesla's possible investment in xAI, the move is seen as widely benefiting both companies as the EV maker's self-driving ambitions hinge on critical AI prowess and xAI would gain from a major customer like Tesla. A win for Musk was widely expected as the billionaire was allowed to exercise the full voting rights of his roughly 15% stake after the automaker moved to Texas from Delaware. Some major investors had opposed the plan, including Norway's sovereign wealth fund and proxy firms Glass Lewis and Institutional Shareholder Services, saying the pay could decrease shareholder value. Tesla's board had said Musk could quit if the pay package was not approved. The vote allays investor concern that Musk's focus has been diluted with his work in politics as well as in running his other companies, including rocket maker SpaceX and xAI. The board and many investors who lent their endorsement have said the record-setting pay package benefits shareholders in the long run as Musk must ensure Tesla achieves a series of milestones to get paid. "Will the growth offset these concerns of dilution - or - is this just giving Elon his wish of enough influence to shape the future of AI? That remains to be seen," said Brian Mulberry, a senior client portfolio manager at Zacks Investment Management. Goals for Musk over the next decade include the company's delivering 20 million vehicles, having 1 million robotaxis in operation, selling 1 million robots and earning as much as $400 billion in core profit. But in order for him to get paid, Tesla's stock value has to rise in tandem, first to $2 trillion from the current $1.5 trillion, and all the way to $8.5 trillion. Achieving each step - an operational goal and a valuation milestone - awards Musk 1% of stock. So the plan could still hand Musk tens of billions of dollars even if he falls short of most of its ambitious targets. If Musk hits all of them, he would be eligible for 12% in stock, or about $1 trillion. The true value of those shares would be $878 billion because the board wants to pay Musk only for increasing the company's value. The package is structured to give Musk up to $1 trillion in shares - minus the value of the stock on the day the board passed the proposal in early September. Musk could either pay that amount in cash or accept fewer shares to account for their original value. The value of the package is always a moving target because it would fluctuate based on changes in the stock price. Musk has said he is interested in the higher voting stake he would get in Tesla as part of the pay package, more than the money, as he gears up to sell a "robot army."

Elon Musk's $1 trillion Tesla Payout Secures Shareholder Backing Amid AI and Robotics Push

The shareholders of Tesla have agreed to a $1 trillion compensation package for CEO Elon Musk. Musk's pay is the largest corporate compensation deal in history. The vote took place during Tesla's annual general meeting on Thursday in Austin, Texas. More than 75% of shareholders voted in favor of Musk's long-term plan for Tesla to transform from an electric vehicle manufacturer to an artificial intelligence and robotics leader. The approval reinforces investor faith in Musk's leadership. The package, which could amount to $878 billion after adjustments, ties Musk's earnings to a series of ambitious operational and valuation milestones that aim to propel beyond cars into autonomous driving, humanoid robotics, and AI chip development. "What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book," Musk told shareholders. Accompanied by the company's dancing humanoid robots, he emphasized Tesla's next phase, launching the Cybercab robotaxi in April, unveiling the next-generation Roadster, and potentially building a massive AI chip fabrication facility in partnership with Intel.